Credit Limit Slashed without Notice

wardyface

My credit card was rejected last night when I went for petrol. I thought this was odd as I knew I had paid my bill on time and had paid £400 off a debit of £1,090, so I should be ok. Also I knew I had a sizeable credit limit. I thought maybe it was a security issue so when I got home I checked online to find that my bank has slashed my credit limit from £15,000 to £2,000 which had put me into the red! Hence my card being rejected.

I phoned the bank this morning and the operator spoke to the lending dept and I was told that they had cut the credit limit as "I didn't need it" I protested that the cut had been so severe as to dump me into the red. They agreed to increase it slightly to £2,500. I complained that I'd not been told and they said they would put it in writing

I was really caught off-guard by this and never saw it coming. I am annoyed that they did it without bothering to tell me. I've never put a foot wrong with the bank so am bewildered

worried48

Charming! In fact that's rather frightening isn't it, doing it with no notice!

Fruit_and_Nut_Case

Quite a common problem.
Google this: site:forums.moneysavingexpert.com credit limit slashed

giblet10

Yep, you're not the only one..which bank is it?

wardyface

Lloyds TSB. I bet if I'd not phoned up they would have slapped me with charges for going over the new credit limit, that I didn't know about. It seems drastic to cut the limit from £15 k to £2k in one go and not tell me. It seems as if they've done it on purpose to put me into the red so they can slap me with a bill for going over. I'm really quite upset about it. I wonder why one day you're good for £15 k and the next they're pulling the rug from under you by setting the credit limit too low

stclair

You may find this an interesting read:

http://www.bbc.co.uk/news/business-21202140

giblet10

Maybe time to switch to another credit card provider.

I just got a £10k starting limit with Cap One's Aspire World.

droiderm

In some ways its like having a loan , and instead of taking your monthly payment they take a huge chunk
they just shouldn't be allowed to lower it below your current spend

have you been taking out other debt lately or done anything where you maybe considered higher risk ?

wardyface

Wow! Thanks for that link. That's just what has happened to me. What a set of shi*s they are.

When I get the letter they say they've sent me I shall phone up the person named on it and ask them to explain it to me as I only got the message second hand via the call centre chap

Yes, I think it is time I voted with my feet and took my ISA money with me

wardyface

Not that I know of. I have recently paid off my M & S credit card so have less debt. I wonder if that affected my credit score adversely

ecoverbee

I had paid off a credit card with £7900 limit. I then had barclaycard lower my limit from £1850-£1550 and tsb also lowered my limit from £7900-£7900. Crazy times I will be glad when I no longer have a credit card.